Labeling: Meaning, Situated, Types, Importance in Marketing

Labeling: Meaning, Situated, Types, Importance in Marketing

Labeling is closely related to packaging. A label is a part of the product or the package conveying information about the product to the purchaser.

It is an integral part of the product’s packaging. It encompasses any printed information on the packaging that describes the product. Labeling can also convey meaning through size, shape, color, and texture. It should promote the product and help customers make decisions.

What Is Labeling?

Labeling is part of the packaging and consists of printed information that describes the product, its usage, and other information appearing on or with the package.

Where Is A Label Situated?

It is usually situated on the package so that it does not interfere with the product’s function or appearance. Labels can also be placed on the product itself or put on a tag attached to the product.

Types of Labels

Irrespective of the product’s location, there are three types of labels available to marketing executives: brand label, grade label, and descriptive label.

A brand label contains only the brand name of the product. It is normally used for agricultural products for which no information needs to be conveyed.

A grade label, on the other hand, denotes the quality of a product based on standards established by the concerned authority.

Another type of label, the descriptive label, is the most common type of label used to describe what the product contains and convey information about its benefits and use. Such a label is needed for buyers who are not expected to have complete information about the product or its use.

Labels may also be classified as persuasive and informational labels. Persuasive labels are promotional and can influence buyers positively. The informative label tells the buyer about the product’s ingredients, use, dating, etc.

Importance Of Labeling

Since so many similar products are available, an attention-getting device, or silent salesperson, is needed to attract buyers’ interest. It is one of the visible parts of a product, an important element in the marketing mix.

Labeling is an important dimension related to packaging, not only for promotional and informational reasons but also from a legal perspective. Labels can be used to promote other products of the manufacturer or to encourage the proper use of products and, therefore, greater satisfaction with them.

From the customers’ point of view, labeling is very important. Ultimate consumers purchase goods and services for personal use. At one time, most were unskilled buyers.

However, due to better education and communication, and rising standards of living, some consumers have become highly informed and disciplined purchasers. As a result of increased consumer affluence, explicit labeling is now required on many products as demanded by them.

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